The government has published base fees for extended producer responsibility (EPR) relating to packaging, ahead of invoices being sent to producers in October.
New regulations apply to all UK organisations that import or supply packaging. The regulations mean that these organisations may be responsible for the costs of dealing with packaging waste.
The fees paid by producers will cover the costs of PackUK (the scheme administrator) and provide local authorities with additional income to cover the cost of recycling and disposal of waste packaging materials.
The fees are listed here. It’s a controversial scheme, and it’s not going down well with producers and operators.
“By heaping a further £124 million on brewers — the equivalent of 4p per 330ml bottle — these new fees sabotage the chancellor’s hopes for British businesses and will hit shoppers at the tills,” said British Beer & Pub Association chief executive Emma McClarkin.
“To impose such significant new costs on brewers who already use recyclable packaging and pubs who collect and recycle virtually all of their glass is hugely disappointing. To put it mildly, EPR could drive some brewers out of the glass bottle market and heap more costs on pubs, which will only endanger jobs and growth.
“This is just not good enough given the barrage of rates and regulations the sector is already grappling with. Given the threats these fees pose to business, workers, and shoppers, government must reconsider these costs and mitigate the impact so the sector can carry on doing what it does best — boosting the economy, keeping people in jobs, and serving up great beer.”
What is extended producer responsibility?
It makes producers responsible for the full life cycle of the products they place on the market, especially for the costs of managing products once they become waste. This new government regime has imposed new fees on the sector, despite brewers and pubs using recyclable glass and managing a significant portion of their glass packaging through private waste contracts, ensuring high recycling rates.
Who pays?
Under EPR, producers — for example, brand owners (brewers) or importers (wholesalers/retailers) — pay fees based on the type and volume of packaging they place on the market. These fees cover local authority costs of collecting, sorting, and recycling or disposing of the packaging waste.
Brewers (especially those packaging and distributing drinks) are directly affected as they fall under the definition of producers. They will face higher costs due to the new packaging fees and the administrative burdens of reporting.
Pub may feel the impact through increased supplier costs, as brewers may pass some of the EPR costs down the supply chain. They will also have to pay double to recycle the same glass bottle, as the products are classed as household waste, but they already have to pay for private contractors to take away their waste.
